Turkey Central Bank Intervenes in FX Markets to Stabilize Lira

Turkey’s central bank intervened in markets by selling foreign currencies for the first time in seven years to stem the lira’s decline against the U.S. dollar.

The intervention is due to “unhealthy price formations” in the market, the monetary authority said in a statement.

The lira swung to gains after the statement and was trading 0.8% stronger at 13.3855 per dollar as of 12:21 p.m. in Istanbul.